Samsung to invest 180 trillion won, hire 40,000 over next 3 years

Samsung to invest 180 trillion won, hire 40,000 over next 3 years

Posted August. 09, 2018 07:37,

Updated August. 09, 2018 07:37

Samsung to invest 180 trillion won, hire 40,000 over next 3 years.
August. 09, 2018 07:37.
by Ji-Hyun Kim jhk85@donga.com.
As major business conglomerates have been unveiling massive investment and hiring plans since late last year, there are growing expectations for an upturn in the business sentiment in the second half of this year.

Samsung Electronics Co. announced on Wednesday that it would invest 130 trillion won (116 billion U.S. dollars) of its planned investments worth 180 trillion won (160 billion dollars) over the next three years in the domestic market, including expanding its semiconductor plant in Pyeongtaek, Gyeonggi Province. “The latest investment reflects the management’s sense of crisis that it could fall behind the competition from China and other countries if it does not act now.”

The Korean tech giant said it will invest some 25 trillion won (22.3 billion dollars) in “four future growth engines” such as artificial intelligence, fifth-generation mobile technology, biotechnology, and automobile electronics. Samsung specified its future growth engines for the first time in eight years since its chairman Lee Kun-hee announced five growth engines in 2010.

Based on the planned investment, Samsung also plans to hire 40,000 employees by 2020, more than the company’s average employment of roughly 25,000 over the past three years, in order to help increase youth employment and meet the maximum workweek of 52 hours. The plan is viewed as a result from President Moon Jae-in’s call for increased investment and hiring during his first meeting with Samsung Electronics Vice Chairman Lee Jae-yong in Singapore last month. Samsung’s planned 130 trillion won (116 billion U.S. dollars) domestic investment is expected to create some 700,000 jobs, including indirect employment.

As major business conglomerates have been unveiling massive investment and hiring plans since late last year, there are growing expectations for an upturn in the business sentiment in the second half of this year.

Samsung Electronics Co. announced on Wednesday that it would invest 130 trillion won (116 billion U.S. dollars) of its planned investments worth 180 trillion won (160 billion dollars) over the next three years in the domestic market, including expanding its semiconductor plant in Pyeongtaek, Gyeonggi Province. “The latest investment reflects the management’s sense of crisis that it could fall behind the competition from China and other countries if it does not act now.”

The Korean tech giant said it will invest some 25 trillion won (22.3 billion dollars) in “four future growth engines” such as artificial intelligence, fifth-generation mobile technology, biotechnology, and automobile electronics. Samsung specified its future growth engines for the first time in eight years since its chairman Lee Kun-hee announced five growth engines in 2010.

Based on the planned investment, Samsung also plans to hire 40,000 employees by 2020, more than the company’s average employment of roughly 25,000 over the past three years, in order to help increase youth employment and meet the maximum workweek of 52 hours. The plan is viewed as a result from President Moon Jae-in’s call for increased investment and hiring during his first meeting with Samsung Electronics Vice Chairman Lee Jae-yong in Singapore last month. Samsung’s planned 130 trillion won (116 billion U.S. dollars) domestic investment is expected to create some 700,000 jobs, including indirect employment.